Salesforce financial results center: FY2020
Salesforce has entrenched its market dominance in the CRM world by posting record third quarter fiscal 2020 results.
The tech giant’s strong third quarter sees revenue of £4.5 billion posted, up 33% year-over-year.
Salesforce has also initiated Q4 FY2020 revenue guidance of $4.743 billion to $4.753 billion, up 32% year-over-year.
Looking ahead to Q1 FY2021, the company has also raised revenue guidance of $4.8 billion to $4.85 billion, up 28% to 29% year-over-year.
Leaders at Salesforce were understandably delighted to be posting such positive results ahead of the festive period:
“We’re now on track to double our revenue in five years,” said Marc Benioff, Chairman and co-CEO of Salesforce. “With Customer 360, only Salesforce is providing companies with a single source of truth, bringing them even closer to their customers across every touchpoint.”
“We had strong growth across our clouds and regions in the quarter as more companies turn to Salesforce as a trusted advisor in their digital transformations,” commented Keith Block, co-CEO of Salesforce. “With these trusted customer relationships, continuous innovation and our phenomenal Trailblazer ecosystem, we have never been better positioned for the future.”
The success of Salesforce paints a bright future for those working with the technology. As a specialist Salesforce recruiter, Mason Frank looks forward to growth in the Salesforce partner and customer ecosystem, as more and more organizations across the globe embrace the world’s number one CRM technology.
Director, Mason Frank International
“Every day we connect hundreds of Salesforce professionals with businesses utilizing the company’s products,” said Andy Mason, Director of Mason Frank.
“It’s encouraging to see Salesforce’s continuing growth and dominance in the CRM market space. To be aligned with a company that continues to scale at pace, while investing in R&D and innovating is extremely exciting, especially as Salesforce is still yet to fully realize its potential in the technology sector.”
Salesforce delivered the following results for its fiscal third quarter:
Revenue: Total third quarter revenue was $4.5 billion, an increase of 33% year-over-year, and 34% in constant currency. Subscription and support revenues were $4.24 billion, an increase of 34% year-over-year. Professional services and other revenues were $274 million, an increase of 22% year-over-year.
Earnings per Share: Third quarter GAAP loss per share was $0.12, and non-GAAP diluted earnings per share was $0.75. Mark-to-market accounting of the company’s strategic investments, required by ASU 2016-01, benefited GAAP loss per share by $0.01 based on a U.S. tax rate of 25% and non-GAAP diluted earnings per share by $0.01 based on a non-GAAP tax rate of 22.5%.
Cash: Cash generated from operations for the third quarter was $298 million, an increase of 108% year-over-year. Total cash, cash equivalents and marketable securities ended the third quarter at $6.53 billion.
Remaining Performance Obligation: Remaining performance obligation ended the third quarter at approximately $25.9 billion, an increase of 22% year-over-year. Current remaining performance obligation ended the third quarter at approximately $12.8 billion, an increase of 28% year-over-year, 28% in constant currency.
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